Asia could provide a supporting pillar for the energy market as demand among Asian economies is expected to surpass $1 trillion this year, or twice as much as in 2015 and 2016. Asia-Pacific consumers consumes over 35% of the 100 million barrels of oil the world uses per day and the percentage is only rising, Reuters reports.
Brent and WTI “peaked on May 22 before selling off sharply due in part to OPEC production decisions and technical selling. While Brent has recovered back into the middle of this range, WTI remains relatively muted — rising domestic shale production and the inability to move this crude through the pipeline and to the Gulf of Mexico are two key catalysts,” according to CNBC.
Technical analysts believe the WTI/Brent spread could tighten in the near-term, meaning WTI prices could see some upside.
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